How to Build World-Class Analytics Teams

What are the core skills needed for an analytics team?

Building a world-class analytics team requires a diverse set of core skills. According to Chandra Narayanan, the following are essential:

• Problem-Solving Skills:

  • Ability to break down complex problems into simpler parts.
  • Translate business questions into technical questions.
  • Convert technical questions into data questions.

• Technical Skills:

  • Proficiency in coding and data analysis tools.
  • Capability to perform quantitative analysis and A/B testing.

• Analytical Skills:

  • Ability to derive actionable insights from data.
  • Compare and benchmark data effectively.

• Influencing Skills:

  • Expertise in storytelling to convey insights.
  • Ability to tailor the message to different audiences for maximum impact.

• Synthesis Skills:

  • Skill in summarizing complex analysis into understandable insights.
  • Translate insights into opportunities and decisions.

These core skills help ensure that an analytics team is not only effective in digging into data but also influential in shaping business decisions.

When is the right time to hire for growth?

Chandra Narayanan emphasizes that the right time to hire growth professionals is after achieving product-market fit. According to him, growth is about scaling a product sustainably. If the product itself isn't resonating with users, hiring for growth won't solve the underlying issue.

Product-market fit is when your users love your product so much that they keep coming back. It's when you can scale without throwing excessive marketing dollars at it.

Here's why product-market fit is crucial:

1. Sustainable Growth: Without it, your growth won't be sustainable.
2. Effective Use of Resources: Growth hires should work on scaling something that’s already working.
3. Accurate Data: It ensures that growth strategies are based on accurate product data, not forced metrics.

In essence, attain product-market fit first. Then, and only then, consider hiring a dedicated growth team to expand your reach effectively.

What should you look for in your first growth hire?

1. Leadership Ability
   Find someone who can eventually build and lead a growth team. They should possess the experience and vision to hire additional team members.

2. Cross-Functional Skillset
   Your first growth hire should have a blend of skills, including design, growth marketing, data analytics, and product management. They need to collaborate effectively with different departments.

3. Analytical Mindset
   Strong analytical skills are crucial. The candidate should be comfortable with metrics, A/B testing, and deriving actionable insights from data.

4. Impact-Driven
   Look for someone who focuses on high-impact projects. They should be adept at prioritizing tasks that move the needle for your company.

5. Resourcefulness
   This person should be able to work with limited resources, especially in the early stages. Creativity and problem-solving skills are vital.

6. Cultural Fit
   A great growth hire needs to align with your company’s culture and values. They should demonstrate a passion for your product and mission.

By focusing on these key attributes, you can set a solid foundation for a successful growth strategy.

How do you measure impact in an analytics team?

Measuring impact in an analytics team is crucial for ensuring you're moving the needle in the right direction. Chandra Narayanan suggests a focus on impact per capita to gauge effectiveness.

What is Impact Per Capita?

Impact per capita is the contribution of each team member to the overall impact of the team. It helps to measure productivity and efficiency on an individual level.

How to Measure Impact Per Capita

• Set Clear Metrics:

  • Define specific metrics that align with your company's objectives.
  • Ensure these metrics are actionable and measurable.

• Performance Benchmarks:

  • Establish benchmarks like market cap contribution per team member.
  • Compare against industry standards or internal targets.

• Prioritize High-Impact Tasks:

  • Ensure each member focuses on tasks that have significant impact.
  • Avoid confusing motion with progress—quality over quantity.

• Quantitative and Qualitative Analysis:

  • Use both data analytics and feedback to assess individual contributions.
  • Regularly review and adjust metrics based on real-time feedback.

In essence, focusing on impact per capita leverages each team member's strength, ensuring the analytics team delivers significant value to the organization.

What are common mistakes in hiring for analytics?

Founders often make several mistakes when hiring for analytics teams.

Focusing Too Much on Resumes: One major error is emphasizing resumes over growth potential. Founders may get dazzled by impressive credentials but fail to assess actual problem-solving abilities.

Overlooking Growth Potential: Chandra Narayanan points out that hiring based on past achievements instead of assessing future growth can be detrimental. It's crucial to look for candidates who are not only skilled but also have the potential to grow within the role.

Ignoring Skill Gaps: Another common mistake is not thoroughly evaluating specific skill gaps. Founders should analyze whether the candidate's skills align with the immediate needs and long-term goals of the company.

Not Assessing Cultural Fit: Cultural fit is vital for team cohesion. Failing to evaluate how well a candidate fits within the company's culture can lead to discord and reduced productivity.

Lack of Comprehensive Evaluation: Sometimes, founders don't take a holistic view of the candidate's abilities. It's essential to assess technical skills, analytical thinking, problem-solving capabilities, and influencing skills.

By avoiding these common pitfalls, founders can build an effective and high-performing analytics team.

How to influence effectively with data?

"It's not just what you say, but how you say it." - Chandra Narayanan

Influencing decisions with data requires more than just presenting numbers.

Chandra Narayanan emphasizes the art of storytelling. It's about connecting the data to compelling narratives that resonate with your audience.

Key Strategies:

• Know Your Audience: Tailor your message to fit the preferences and understanding of your audience.

  "If you try to influence Javi, just show the data. For Chris Cox, tell the story," Chandra advises.

• Simplify Complex Information: Break down intricate data into simple, understandable insights.

  "Clarity of thought leads to simplification," says Chandra.

• Use Engaging Narratives: Create a story that ties data to actionable insights and decisions.

• Iterate and Validate: Continuously test your hypotheses with real data and refine your message accordingly.

By combining storytelling with solid data analysis, you can effectively influence and drive decisions in your organization.